Jun 4, 2017
Earnest Money Disputes in Arizona
Settling Earnest Money Disputes
Generally speaking, when purchasing a home the buyers must put "earnest money" into escrow an escrow account until the home has been actually purchased. The amount required to put into escrow for the purchase of a residential home is usually between $2,000 and $5,000. most earnest money disputes are governed by the contract itself and here in Arizona most purchases are made with the Arizona Association of Realtors' (AAR) purchase contract. Sections three and seven of the contract address earnest money disputes.
Section seven of the purchase contract states that the Arizona buyer and seller must mediate before taking any legal action. This mediation can take place either through a private mediatore or the AAR Dispute Resolution System.
Cost - Benefit Analysis
When is an earnest money dispute worth litigating over? In many instances disputes over earnest money just aren't worth litigating, especially surrounding the purchase of residential properties. When dealing with commercial real estate purchases the money placed in escrow can be in the hundreds of thousands of dollars.